Microfluidic Systems Receives Continued Funding From the Department of Homeland Security (DHS) Toward the Commercial Production

FREMONT, Calif. , July 1 /PRNewswire/ -- Microfluidic Systems Inc. (MFSI) announced today that it has been awarded the Phase 3X agreement for the production of Microfluidic - Bioagent Autonomous Networked Detector (M-BAND). This award is the fourth in a series of funded phases by the DHS Science and Technology Directorate since 2003. The continued funding through March 2009 , will allow for low-volume production of automated systems for extended field trials in key locations around the US. Included in the continued funding is an option to purchase, deploy and support additional instruments for the field during the period from April 2009 through September 2009 . These new systems to be deployed are intended to improve the detection of biological pathogens that could contaminate the population in a city or large metropolitan area.

The US Department of Homeland Security's Science and Technology Directorate has been funding this effort dedicated to monitoring air quality, particularly focused on biosecurity threats, such as those listed on the A and B lists of the Centers for Disease Control (CDC).

MFSI is the prime contractor receiving this funding to develop an improved, cost-effective autonomous airborne pathogen detection and identification system. As announced on Feb. 25, 2008 , MFSI has teamed up with Applied Biosystems and United Technologies, Hamilton Sundstrand Division, to incorporate proven technologies into the Microfluidics-based Bioagent Autonomous Networked Detector (M-BAND) and ensure service and support from these two world-class corporations. Applied Biosystems, based in Foster City, Calif ., is a global leader in the development and commercialization of instrument-based systems, consumables, software and services for the life science market and is expected to provide the manufacturing of TaqMan(R) Real-time PCR pathogen assays, which are chemistry reagents that detect harmful pathogens. Hamilton Sundstrand based in Pomona, Calif. , is a highly diversified system engineering, manufacturing and product support company and will provide design for manufacturing, pilot production, high volume manufacturing and product support.

MFSI is the developer and manufacturer of key microfluidics components for bioanalysis. Thus as the continuing prime contractor, a fully integrated and complete team has been established to role out the M-BAND product with state-of-the-art microfluidics and detection technology, superior manufacturing and field support.

"We are extremely pleased that MFSI has been selected to go forward with this key opportunity to commercialize the M-BAND system," said M. Allen Northrup , PhD., CEO, Microfluidic Systems. "This next level of development geared toward large scale manufacturing, deployment, and support will help ensure that critical biosecurity capabilities are in place in the US, and will allow expansion of the technology into a variety of other commercial applications."

The BAND Program is managed by Edward Rhyne , PM, DHS, S & T, contract no. HSHQPA- 05-9-0017

About Microfluidic Systems Inc.

Microfluidic Systems (MFSI), http://www.microfluidicsystems.com, was founded in 2001 and is focused on the development of microfluidic systems for automated preparation of biological assays. MFSI personnel have been involved with the development of automated DNA-based pathogen detection systems and microfluidics for the US Government and commercial markets for over 12 years, including the world's first miniaturized, portable, battery-operated, real-time, polymerase-chain-reaction (PCR)-based detection system. For more information, please contact MFSI at 510-354-0400.

Forward-looking Statement

Statements in this press release are forward-looking. Actual results might differ from these statements due to unforeseen events and uncertainties. MFSI disclaims any intention to or obligation to update these forward-looking statements.

(C) Copyright 2008. Applied Biosystems, AB (Design) and Applera are registered trademarks of Applera Corporation or its subsidiaries in the US and/or certain other countries. Applera Corporation. All rights reserved.

For more information, contact:

M. Allen Northrup

510-354-0400, ext. 201

SOURCE Microfluidic Systems Inc.